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A customer looks at an LG washer and dryer at the RC Willey home furnishings store in Draper, Utah, USA on Monday, August 28, 2023.
Americans are not pessimistic Gasoline prices are still rising, but But they remain nervous about inflation and the direction of the economy, and concerns are beginning to surface. Possible government shutdown.
According to preliminary figures released on Friday, consumer sentiment in September surveyed by the University of Michigan fell 1.8 percentage points from the previous month.
“Both short- and long-term expectations for economic conditions have improved modestly this month, but net consumers remain relatively cautious about the economic trajectory,” Joan Hsu, director of consumer research at the University of Michigan, said in a release. I’m keeping it,” he said. “So far, few consumers have mentioned the possibility of a federal government shutdown, but if it becomes a reality, the economy will be much more likely to suffer, as it was just a few months ago when the debt ceiling was about to be breached. Consumer views are likely to decline.
Gasoline prices are a highly visible indicator of inflation, so sentiment could start to deteriorate quickly. Last summer, when gas prices topped $5 a gallon and inflation hit a 40-year high, sentiment fell to record lows. The national average for regular gasoline on Friday was $3.87 a gallon, 7 cents higher than a week ago and 17 cents higher than the same day last year, according to AAA.
Consumers’ expectations for the inflation rate for the coming year were 3.1% in September, down from 3.5% the previous month.
This story is in development and will be updated.